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HomeMy WebLinkAboutOceanside, City of; 1981-01-30;1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 i LEASE - THIS LEASE is made this x4 3--.- p _ day of S&\j U, )' 1981, by and between the City of Oceanside, a California Municipal Cor- poration, hereinafter referred to as "Oceanside," and the City of Carlsbad, a California Municipal Corporation, hereinafter referred to as "Carlsbad.': WITNESSETH WHEREAS, Oceanside owns a public parking lot which is in ex- cess of its needs; said lot is more particularly described in Exhibit 1, attached hereto and made a part hereof; and WHEREAS, Carlsbad has determined that there is a necessity for more public parking in the City of Car 1 sbad to serve the area around the Plaza Camino Real Regional Shopping Center; and WHEREAS, the parties have reached agreement on mutually bene- ficial terms whereby Oceanside will lease their public parking lot to Carlsbad.; NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto agree as follows SECTION 1: Lease of Public Parking Area. Oceanside hereby leases to Carlsbad and Carlsbad hereby leases from Oceanside the real property and improvements located in the City of Oceanside and more particularly described in Ex- hibit 1. SECTION 2: Term. The term of the Lease shall commence on the day of , 19r! The term of this Lease shall be fifty (50) _ . . 1 . . . . 1 2 3 4 5 6 7 0 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - years and shall expire at midnight of the last day of the fiftieth (50th) year. SECTION 3: Rent. ---- Carlsbad agrees to pay rental in the amount of Seven Hundred Thousand and Forty Dollars ($700,040) for the possession and use of the leasehold as provided herein for the fifty (50) year term as follows: Carlsbad shall pay to Oceanside without deduction, setoff, prior notice, or demand, the sum of Seventy Thousand Dollars ($70,000) annually for each of the first ten (10) years of this Lease and One Dollar ($1.00) annually for each of the remaining forty (40) years of the Lease. The rent shall be due and payable on the last day of each year of this Lea-se. SECTION 4: Rent Adjustment. As of the date of this Lease state law provides that Carlsbad will receive one cent of the six cent state sales tax to be col- lected on taxable sales at the Broadway Department Store at Plaza Camino Real in Carlsbad. The rental payment in Section 3 is based upon an assumption that Carlsbad will continue to receive said one cent through the first ten (10) years of this Lease. If the state law governing the distribution of sales tax to cities is changed at any time during the first ten (10) years of this Lease so that Carlsbad receives less than said one cent, and if any portion of said one cent is distributed to cities on a basis other than situs of sale, then the rental payment due under Section 3 of this Lease shall be reduced to One Dollar ($1.00) per year effective when ....... ....... -2- . . . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - said change in state law is effective. During the first ten (10) years of this Lease, if state legi- slation alters the manner in which state sales tax revenues are distributed to local entities in some manner other than described above in this section, and if such alteration reduces the sales tax revenues distributed to the City of Carlsbad relating to sales occurring at the Plaza Camino Real Shopping Center, and if such alteration results in the receipt by Oceanside of a port said revenues, then the rental described in Section 3 of Lease shall be subject to renegotiation upon the request ion th of is the of City of Carlsbad so as to provide for a reduction of said rent consistent with the reduced tax revenues in Carlsbad and the in- creased tax revenues to Oceanside. SECTION 5: Option. The City of Carlsbad shall have the option to purchase the leasehold at any time for One Dollar ($l.OO), on the condition that the City of Carlsbad shall have paid the rental required by Sections 3 and 4 of this Lease. The parties hereto acknowledge and agree that the nominal amount of the purchase price is based on the fact that the payments required of Carlsbad by this Agree- ment represent both rental and approximate fair market value. The option may be exercised by giving Oceanside written notice of Carlsbad's intent to exercise the option. Oceanside shall have sixty (60) days within which to deliver title to the subject pro- perty. SECTION 6: Maintenance and Operation. -- Carlsbad shall maintain during the term of the Lease here- under the parking area in good order, condition, and repair, and -3- 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 shall be responsible for all costs and expenses of operating same as a public parking facility. Oceanside agrees to keep the lease- hold free and clear of all liens, charges and encumbrances. The estate conveyed hereby is subject to the right of Plaza Camino Real to maintain, manage and operate the parking facilities for the public purposes for which the same were constructed and con- veyed to Oceanside to wit: for use by the general public as an off-street parking lot for motor vehicles. Immediately upon exe- cution of this Lease, Carlsbad shall enter into an agreement with Plaza Camino Real whereby the subject property will be made sub- ject to the Plaza Camino Real Public Parking Lot Operating Agree- ment between City of Carlsbad, Parking Authority of City of Carls- bad and Developer, Exhibit F to the Fourth Supplement to Agreement for Expansion of Plaza Camino Real Regional Shopping Center, whereby Plaza Camino Real operates the public parking areas owned by the Carlsbad Parking Authority. In addition, the agreement shall provide for the assumption by Plaza Camino Real of Carls- bad's obligations under this section to operate and maintain the public parking area. SECTION 7: Indemnity. Carlsbad shall indemnify Oceanside and hold Oceanside harm- less from and against any and all actions, claims, demands, costs, damages, penalties, expenses or liabilities of any kind whatsoever by reason of the maintenance or operation of the parking lot or by reason of the use thereof. This indemnification shall include reasonable attorneys: fees which Oceanside may expend in connec- -4- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 tion with any of the foregoing. SECTION 8: Insurance. Carlsbad shall, from and after the date of this Lease, carry public liability and property damage insurance covering the park- ing lot written by financially responsible insurance company(s), authorized to do business in the State of California and with li- mits of liability of at least a combined single limit of Two Million Dollars ($2,000,000) per occurrence. All such insurance shall name Oceanside as additional insured and shall be maintained in full force and effect by Carlsbad for the term of this Lease. Should the parking facilities be damaged by fire, lightning, vandalism, malicious mischief or any other casualty, Carlsbad shall cause the repair of such damage with all reasonable dispatch Carlsbad shall procure and maintain or cause to be procured and maintained in full force and effect at all times during the term of this Lease, a policy or policies of insurance against loss or damage to the improvements of the parking lot, resulting from fire lightning, vandalism, malicious mischief, and such other perils as are ordinarily included in "fire and extended coverage insur- ance," providing coverage at one hundred percent (100%) of the re- placement value of said improvements written by financially re- sponsible insurance company(s) authorized to do business in the State of California. Oceanside shall be named as an additional insured under said policy of insurance. Proceeds of the said in- surance shall be applied toward the cost of repairs or replace- ments of said improvements. Carlsbad shall cause policies of insurance or certificates thereof to be provided to Oceanside to evidence Carlsb'ad's compli- -5- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - ante with the requirements of this section and providing that the coverage under such policies shall not be reduced or cancelled ex- cept after thirty (30) days written notice to Oceanside. .The in- surance required under this section may be obtained through blan- ket policies or contracts which may cover other properties or lia- bilities, provided that as respects the insurance referred to in this section, there is separately stated and allocated in such policies or contracts with respect to the parking lot an amount at least equal to the amount of insurance required with respect to the parking lot as if the same were so insured under separates poli ties or contracts of insurance. SECTION 9: Purpose of Use. -- Carlsbad shall be obligated to manage, operate and maintain the parking area leased so as to afford to the general public an off-street public parking lot for motor vehicles without charge in accord with the Public Parking Law of 1949. SECTION 10: Assignment and Sublease. This lease and any interest herein shall not at any time, without the prior written consent of Oceanside, be mortgaged, pledged, assigned, subleased or transferred by Carlsbad. SECTION 11: Assumption of Obligations. Except for payment of rent as provided in Section 3 above, Carlsbad may satisfy all or any part of its obligations to Ocean- side under this Lease by furnishing Oceanside with a copy of an agreement between Carlsbad and Plaza Camino Real whereby Plaza Camino Real assumes responsibility for such obligations. SECTION 12: Surrender of Leasehold. Upon the expiration of this Lease and in the absence of exer- -6- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -. cise of any option to buy, Carlsbad agrees' that they shall surrend- er to Oceanside all property then under lease hereunder, together with any improvements thereon, in good order and condition and in a state of repair that is consistent with prudent use and conscien- tious maintenance except for reasonable wear and tear. SECTION 13: Right of Entry. Oceanside and its designated representative shall have the right to enter upon the leasehold during reasonable business 'hours and in emergencies at all times, for any purpose related to Ocean- side's rights or obligations under this agreement, or for any other lawful purpose. SECTION 14: Liens. -- When Oceanside leases the property to Carlsbad it shall be free of all liens and encumbrances. Carlsbad shall keep the park- ing lot free and clear of all material liens or mechanics' liens or any other similar liens for repair, maintenance and operation, services, labor or materials which may arise from any work done on the parking lot-by or at the direction of Carlsbad. Carlsbad may in good faith contest the validity of any such lien and shall at its expense defend itself and Oceanside against the same and pay any final judgment which may be rendered thereon. If Carlsbad elects to contest any such lien, they shall record a surety bond in accordance with California Civil Code Section 3143 releasing. the parking lot from such lien within ten (10) days after it be- comes aware of the recordation of any such lien or Carlsbad shall deliver the aforementioned bond to Oceanside. I SECTION 15: Taxes. The parties take the position that the leasehold constitutes -7- . - . _ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - public property free and exempt from all taxation; however, Carls- bad and Oceanside agree to jointly take whatever steps may be ne- cessary to contest any proposed tax or assessment, or to recover any tax or assessment paid. SECTION 16: Quiet Enjoyment. -_- The parties hereto mutually covenant and agree that Carlsbad, by keeping and performing the covenants and agreements herein con- tained, shall at all times during the term, peaceably and quietly have, hold, and enjoy the leased property without suit, trouble or hindrance from Oceanside. SECTION 17: Applicable Law. This Lease shall be governed exclusively by the provisions hereof and by the laws of the State of California, subject to the waivers, exclusions, and provisions herein contained. SECTION 18: Notices. All notices, statements, demands, requests, consents, appro- vals, authorizations, offers, agreements, appointments, or desig- nations hereunder by either party to the other shall be in writing and shall be sufficiently given and served upon the other party if sent United States registered mail, return receipt requested, postage prepaid and addressed as follows: City of Oceanside City Manager 321 North Nevada Street Oceanside, CA 92054 City of Carlsbad City Manager 1200 Elm Avenue Carlsbad, CA 92008 SECTION 19: Waiver. The waiver by Oceanside of any breach by Carlsbad of any term -8- (I - . . . I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 covenant, or condition hereof shall not operate as a waiver or any subsequent breach of the same or any other term, covenant, or SECTION 20: Enforcement. If Carlsbad shall at any time fail or refuse to pay any obli- gation or perform any work or furnish any services required on their part under this Lease, Oceanside may prosecute any proceed- ing at law or in equity to secure by way of specific performance or otherwise Carlsbad's obligations. SECTION 21: Validity. If any one or more of the terms, provisions, promises, cove- nants, or conditions of this Lease shall to any extent be adjudged invalid, unenforceable, void, or voidable, or unforceable by Ocean side, or if for any reason it is held by such a Court that the covenants and conditions of Carlsbad hereunder, including the cove nants to pay rent hereunder, is unenforceable for the full term hereunder, then and in such event for and in consideration of the right of Carlsbad to possess, occupy, and use the leasehold, which right in such event is hereby granted, then this Lease shall there upon become, and shall be deemed to be, a lease from year to year under which the annual rents herein specified shall be paid by Carlsbad. . . . , . . . . . * . . , . . l . . . . . t . . l . . . , . . , . . . -9- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 IN WITNESS WHEREOF, Oceanside and Carlsbad have signed this Lease as of the day and year first above written. ATTEST: APPROVED AS TO FORM: ATTEST: CITY OF CARLSBAD APPROVED AS TO FORM: RONALD C. PACKARD, Mayor \ City Attorney ' y -lO- A parcel of land situated in the City of Oceanside, County of San Diego, State of California, being a portion of the northeast quarter of Section 31, Township 11 south, Range 4 West described as follows: Beginning at the southeast corner of the north half of the northeast quarter of Section 31; thence along the south line of said north half, north 89O42'19" west, 325.70 feet to the true point of beginning: thence north 89°42'19t' west, 1150.70 feet; thence leaving said south line, north 46O36.53" east, 143.87 feet; thence north, 312.85 feet to the southerly line of State Highway 78; thence along said southerly line north thence north 88OO0'18" east, 543.32 feet; and north 89O41'28" east, 500.04 feet; thence south O"24'11" east, 439.22 feet to the true point of beginning. EXHIBIT #l WRITE IT-DON'T SAY IT INTER-DEPARTMENT MEMORANDUM A. M. TO City Clerk DATE Feb. 2 " 81 P'M. RE: Carlsbad-Oceanside Parking Lot Lease Attached for your files are the original copies of the Carlsbad-Oceanside Parking Lot Lease and Resolution No. 81-13 approving the agreement. Attachment 4 a p’ / / REPLY ON THIS SHEET w City Attorney F.ROM WlLMER “SERVWE- tp4c STANDARD ,NTER DEPT. MEMO FORM 1 I-*.%--PI) I I^ - : , -* 1 5 6 7 8 9 10 11 12 13 14 WHEREAS, it is necessary for the City Council to formally 15 16 17 18 19 NOW, THEREFORE, BE IT RESOLVED by the City Council of the 20 21 22 23 24 25 26 27 28 HARLES R. REVLETT CITY ATTORNEY 321 N. Nevada RESOLUTION N0.81-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OCEANSIDE ACCEPTING THE CONVEYANCE OF CERTAIN REAL PROPERTY FROM PLAZA CAMINO. REAL AND AUTHOR- IZING ITS LEASE TO THE CITY OF CARLSBAD. WHEREAS, on June 25, 1980, this City Council approved an agreement between the City of Oceanside and Plaza Camino Real, a California limited partnership, wherein Plaza Camino Real was required to convey certain real property to the City of Ocean- side; and WHEREAS, said agreement requires the City of Oceanside to lease said real property-to the City of Carlsbad in accordance with the terms and conditions of the agreement between the City of Oceanside and the City of Carlsbad dated November 8, 1978; and accept the conveyance from Plaza Camino Real of the real property described in Exhibit "A" attached hereto and incorporated herein by reference and to authorize the subsequent lease of said prop- erty to the City of Carlsbad. II City of Oceanside that this Council formally accepts the convey- ance from Plaza Camino Real of the real property described in -- Exhibit "A" hereto and further authorizes the lease of said prop- II erty to the City ,of Carlsbad in accordance with the terms and 1 City of Carlsbad dated November 8, 1978. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 APPROVED AS TO FORM & LEGALITY: 16 17 18 19 20 21 22 23 24 25 26 27 28 4ARLES R. REVLETT CITY ATTORNEY 321 N. Nevada Oceanside, CalIf. PASSED AND ADOPTED by the City Council of the City of Oceanside, California this 14th day of January , 1981, by the following vote: AYES: BAGLEY, BELL, BISHOP, BURGESS, CASEY NAYS: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: City Attorney STATE OF W~IFORN1A ) COUNTY OF S.AbJ DIEGO) 55. CITY cI,F OCE/~~J:,!~E ) I, B,*.,fnA”.^ I’ I\, -‘+! ’ >‘. CT+y C!erk of $Lq C;‘,, gf o~p371s:+J+ Ci’;fprnia, D() HEREI]‘/ ‘- “- .‘~.’ T! a~ tLe icreg--inq rT-?la,“-.-’ \n i: :j ,I:, ?.I >-.>‘rrj by the City C-- / -.‘-,I I”yj was Br)---~in-! ’ ’ ? ),,j>\,-P m: ?,a’ .ld city at a __....... - the ._..______ ~.%!?.....: ______ :...I:.: ____ say-j CItv Cp*cncil held on (SEAL) -2- RES. 81-13 A parcel of land situated in the City of Oceanside, County of San Diego, State of California, being a portion of the northeast quarter of Section 31, Township 11 south, Range 4 West described as follows: Beginning at the southeast corner of the north half of the northeast quarter of Section 31; thence along the south line of said north half, north 89"42'19" west, 325.70 feet to the true point of beginning; thence north 89"42'19" west, 1150.70 feet; thence leaving said south line, north 46"36'53" east, 143.87 feet; thence north, 312.85 feet to the southerly line of State Highway 78; thence along said southerly line north thence north 88'00'18" east, 543.32 feet; and north 89O41'28" east, 500.04 feet; thence south 0'24'11" east, 439.22 feet to the true point of beginning. Res. 81-13 EXHIBIT A